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Tuesday 20th March 2012
Stefan Chiu, Chang Song, Kai Kang, Tian Lu and Cindy Liu
Alan Bates Products Ltd.
Suitability, Acceptability & Feasibility Analysis of the four strategic plans
Strategy 1: Acquire a software company
Strategy 2: New satellite receiver technology
Strategy 3: Design a heart monitor
Strategy 4: Target the European market
Conclusion and recommendation
Outline
Alan Bates Products Ltd.
Acquire a software company
Existing resources and competenciesHigher margins£2.5 million
Give up ¼ of equity
Strategy 1
Alan Bates Products Ltd.
Develop new satellite receiver technology
Global potentialResearch and development£1 million
Resistance to change
Strategy 2
Alan Bates Products Ltd.
Design a smaller and more effective heart monitor
Expertise
Market shiftTechnological risks£5 millionLack of experience
Strategy 3
Alan Bates Products Ltd.
Sell the existing tablet computer to the European market
Low cost knowledgeBrand awareness
Interest rate risksCostly - £3 million
Strategy 4
Alan Bates Products Ltd.
Suitability Acceptability Feasibility
Strategy 1 Capitalise on current strengths Higher margins Existing resources
Strategy 2 Potential venture Positive NPV Highly affordable
Strategy 3 Unforeseeable market Technological risks Costly
Strategy 4 Brand awareness Interest rate risks Costly
Conclusion
Alan Bates Products Ltd.
Suitability Acceptability Feasibility
Strategy 1* Capitalise on current strengths Higher margins Existing resources
Strategy 2 Potential venture Positive NPV Highly affordable
Strategy 3 Unforeseeable market Technological risks Costly
Strategy 4 Brand awareness Interest rate risks Costly
Recommendation
*Acquire a software company for £2.5 million
Alan Bates Products Ltd.
Stefan Chiu, Chang Song, Kai Kang, Tian Lu and Cindy Liu
Alan Bates Products Ltd.
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